Requirement 1

Miner Company
Statement of Affairs
May 31, 20x4
Book Value
Assets
Assets Pledged with Fully Secured Creditors:
P50,000 Notes Receivable P39,800
1,200 Accrued Interest Receivable 1,000

Notes Payable 40,000

Accrued Interest Payable 800

119,000 Building
Note Payable 20,000
Accrued Interest Payable 800

Assets Pledged with Partially Secured Creditors:

13,200 Equipment 4,200
Note Payable 10,000

Free Assets
6,000 Cash
61,000 Accounts Receivable
60,000 Inventory
1,100 Prepaid Insurance
8,500 Goodwill
Total Net Realizable Value
Liabilities having Priority:
Wages
Taxes
Net Free Assets
Estimated Deficiency to Unsecured Creditors
P320,000

Book Value
Equities
 Liabilities Having Priority:
P6,000 Accrued Wages P6,000
2,400 Taxes Payable 2,400

Fully Secured Creditors:

60,000 Notes Payable 60,000
1,600 Accrued Interest Payable 1,600

Partially Secured Creditors:

10,000 Note Payable
Equipment

Unsecured Creditors:
170,000 Accounts Payable
10,000 Notes Payable

Stockholders' Equity
110,000 Common Stock
-50,000 Retained Earnings
(Deficit)
P320,000

Requirement 2
Deficiency Account
May 31, 20x4
Estimated Losses: Estimated Gains:
Accounts Receivable P11,000 Common stock
Notes Receivable 10,400 Retained Earnings
Inventory 30,000 Estimated Deficiency
Buildings 44,000 to Unsecured
Equipment 9,000 Creditors
Prepaid Insurance 700
Goodwill 8,500
P113,600

Estimated final dividend rate to unsecured creditors is: P132,200/P185,800 = 71.15%

 Realizable Value

P40,800

40,800

75,000

20,800 P54,200

6,000
50,000
30,000
400
0
140,600

6,000
2,400 8,400
132,200
53,600
P185,800

Unsecured
 P8,400

61,600

10,000
4,200 P5,800

170,000
10,000

P185,800

P110,000
-50,000

53,600

P113,600

800 = 71.15%